IT services major Infosys announced an 8 percent increase in salaries for its employees based in India.
The salary increase will be effective July 1.
The company’s offshore employees will get 3 percent salary increase.
Infosys’ offshore employees were not given salary increase in February.
The salary hike is significant as there was speculation that Infosys may not offer salary increase due to poor market conditions.
NR Narayanamurthy’s return to Infosys as chairman and the company’s plan to hire an external CEO in 2015 will reflect on the company’s growth in the coming quarters.
The global sales team has been given 8 percent hike effective May 1.
Last month, the Bangalore-based IT company handed out increment letters to its sales teams and to those employees who had received promotions.
Last year, salary increases were given in October, when the company came under pressure from competition. Infosys then gave 6 percent salary hike to offshore employees and 3 percent to onsite employees.
Infosys in a recent stock exchange filing said: “These wage pressures have led to a situation where wages in India are increasing at a faster rate than in the United States, which could result in increased costs for companies seeking to employ technology professionals in India, particularly project managers and other mid-level professionals.”
Infosys recently said it made a gross addition of 8,990 employees (net addition of 1,059) for the fourth quarter of fiscal 2012-13. Net addition of 1,059 employees was better than third quarter’s 977, but significantly reduced from second quarter’s net addition of 2,610 and first quarter’s net addition of 1,157 employees.
